Operator: Ladies and gentlemen, thank you for standing by. Welcome to the McMoRan Exploration Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Participants will be limited to one question in the Q&A session. If you have additional follow-up questions, please re-enter the queue after your question has been answered.

I would now like to turn the conference over to Ms. Kathleen Quirk, Senior Vice President and Treasurer. Please go ahead, ma'am.

Kathleen L. Quirk - SVP and Treasurer: Thank you and good morning, everyone. Welcome to the McMoRan Exploration fourth quarter 2012 conference call. Our results were released earlier this morning and a copy of the press release is available on our website at mcmoran.com.

Our conference call today is being broadcast live on the Internet and anyone may listen to the call by accessing our website homepage and clicking on the webcast link for the conference call. As usual, we have several slides to supplement our comments this morning, and we'll be referring to the slides during the call. The slides are accessible on the webcast link at mcmoran.com. In addition to analysts and investors, the financial press has been invited to listen to today's call and a replay of the webcast will be available on our website later today.

Before we begin our comments, we'd like to remind everyone that today's press release and certain of our comments on this call includes forward-looking statements. We'd like to refer everyone to the cautionary language included in our press release and presentation materials and to the risk factors described in our SEC filings.

On the call today are McMoRan's Co-Chairman, Jim Bob Moffett and Richard Adkerson. I'll start by briefly summarizing the financial results and then turn the call over to Richard who will be reviewing the slide material. As usual after our prepared remarks, we’ll open up the call for questions.

Today McMoRan reported net loss applicable to common stock of $1.2 million or $0.01 per share for the fourth quarter of 2012 compared with net income of $28.4 million or $0.16 per share for the fourth quarter of 2011. The fourth quarter 2012 results include $39.7 million in net gains associated with the sale of two traditional Gulf of Mexico property packages and impairment charges totaling $34.5 million. Production for the fourth quarter 2012 averaged 119 million cubic feet of equivalents per day net to McMoRan that was in line with our previous guidance and compared to 170 million a day in the fourth quarter of 2011.

Our oil and gas revenues during the fourth quarter totaled $80.6 million compared to $118.6 million during the fourth quarter of 2011. I realize gas prices in the fourth quarter of 2012 were 368 per Mcf that compared with 357 in the year ago period and the realized prices for oil and condensate averaged a $104 per barrel in the 2012 period compared with the $111 per barrel in the year ago period.

Earnings before interest taxes depreciation, amortization and exploration expense totaled $37 million in the fourth quarter of 2012. We used cash in operating activities totaling $28.9 million, which included $31 million in working capital usage and $28 million in abandonment expenditures.

Transcript Call Date 01/18/2013

Operator: Lee Cooperman, Omega Advisors.

Lee Cooperman - Omega Advisors: Maybe, I can ask you to peer into the future, if you're willing to and to make it easy for you, I'll give you the assumptions that I'm going to give you for the question – surrounding the question I am asking. The deal closes in the second quarter as expected. Your planned drilling program moves ahead as you anticipate. You find in the ultra-deep what you think, that you have. When does the first income flow come to the royalty trust owners?

James R. Moffett - Co-Chairman, President and CEO: Looking at our portfolio prospects, the onshore well will probably come on first and Davy Jones No. 2 and No. 1 would be on about the same time. Now whereas we have the facilities in place for Davy Jones, and we will put that on when the wells are completed, because of the onshore wells being above 25,000 feet, across space that we now see as a result of the result Lineham Creek. So those would be the most likely to come on first.

Lee Cooperman - Omega Advisors: But whether this translate would you get, if it all goes according to your plan. You think we're two years away from cash flow to the royalty trust owners?

James R. Moffett - Co-Chairman, President and CEO: (indiscernible).

Lee Cooperman - Omega Advisors: Sorry, I didn’t hear you.

James R. Moffett - Co-Chairman, President and CEO: Yes.

Lee Cooperman - Omega Advisors: Well, Jim Bob if you are right on what you have with ultra-deep isn’t the potential for the royalty trust to be (indiscernible) we are getting for our shares in MMR?

James R. Moffett - Co-Chairman, President and CEO: If you have seen, the success rate that we hope to have certainly something that would be achievable.

Operator: Duane Grubert, Susquehanna Financial.

Duane Grubert - Susquehanna Financial: Jim Bob on the news with Davy Jones status you mentioned that you've reperforated it you know the holes are open and you are thinking about doing frac job. Can you walk us through what do you visualize. Is it near board damage or why would you be thinking about a frac job and how big might that job be?

James R. Moffett - Co-Chairman, President and CEO: Duane if I knew the answer to whether this is a small frac would accomplish or we think it will the problem is the near-bore damage. We can pump into it, but since we don't have any propant in the third and we are basically doing a liquid fluid we don’t get the propant in the fracture. And therefore the fracture appears to have closed, with liquid propant, that’s why we are talking about getting some profit in there getting in many side by the liquid side, which was successful in showing that all perforations were open and they are saying was one of these years you got just take it step-by-step and we’ve had a lot of steps there. But based on the D sand that we perforated back in March of last year, we didn’t get to the perfect (indiscernible) sand that information where we hope to do that with our (indiscernible) open is to get some propant so that in the near all shale damage, let the reservoir flow into the borrow and they will give the better idea of we’re not that the borrow damage can be fixed with the many track and that may lead us to (indiscernible) inflation that we need to go to a bigger frac, but as you know better than anybody you got to take your time and not get too far ahead of yourselves when you are putting through it and especially this size frac that you are going to do. If it's a small frac, we get past the whole skin damage and you do it and you know going in there and with an overly care. So, we hope to be at this mini frac, 100,000 pounds of sands and more getting in here in this formation having a chance to be expose the borrow without skin damage, we get a good idea of how feisty that is and whether or not we need. But that will do the trick (indiscernible) or whether we need to go to larger frac.